Camtek’s Order Torrent: Advanced Packaging Inflection Becomes a Reality

The Quarter That Delivered

Camtek’s second-quarter results were more than a beat — they were a confirmation. Revenue hit a record $133.2 million, up 8% year-over-year and 10% sequentially, while gross margin held at 51.4%. But the top-line print was secondary to the forward-looking signal: “Since the beginning of the year, we have experienced a significant acceleration in order intake, bringing total orders received year-to-date to more than $600 million.” — Rafi Amit, President and Chief Executive Officer · 2026-08-10 That order book — more than four times quarterly revenue — has transformed visibility for the rest of 2026 and into 2027.

Management explicitly framed this as the payoff of a long-anticipated timing lag. In February, “Ramy Langer noted that “we are seeing a much better visibility” and that confidence in the second half was “very high.”” — Ramy Langer · 2026-02-18 Now that surge has arrived. The company guided Q3 revenue to $158–160 million, a ~20% sequential jump, and expects over 30% growth in H2 2026 versus H1 — the same pattern hinted at in May when Ramy said “we expect that this growth will continue into ’27.” — Ramy Langer, Chief Executive Officer · 2026-05-12

Orders: The Tally

The order intake narrative is dominated by Advanced Packaging business. Roughly 80% of the $600M is for advanced packaging applications, with High Bandwidth Memory (HBM) accounting for over 20% of the total and OSATs for more than 50%. The transition to 3D IC packaging capacity is driving multisystem orders from leading foundries, IDMs, and OSATs. Management stressed that OSATs are moving aggressively into CoWoS-like architectures, and Camtek’s dominant position there makes it a prime beneficiary.

Meanwhile, the product mix is shifting toward the new Eagle G5 and Hawk platforms, which have higher ASPs and are now ~50% of system revenue. CFO Moshe Eisenberg expects continued operating leverage: “We expect revenues of $158 million to $160 million in the third quarter with sequential double-digit growth in Q4 and further growth into 2027.” — Moshe Eisenberg, Chief Financial Officer · 2026-08-10

The Photonics Emergence

One genuinely new theme is photonics. Ramy Langer detailed: “If you look at the $600 million orders that we talked about, 5% is photonics. So it’s a nice number to start.” — Ramy Langer, Chief Executive Officer · 2026-08-10 This is early but strategically important — it marks an expansion beyond the core inspection/metrology markets into silicon photonics and compound semiconductors, both expected to scale as AI connectivity demand grows.

The AI revolution is driving unprecedented demand for data center, compute capacity and power infrastructure. With AI adoption still in its early stage, we believe demand for AI compute infrastructure will continue to grow significantly, supporting sustained investment in AI data center and advanced semiconductor manufacturing.

Readiness and Profitability

The company has been preparing for this surge. Capacity expansion, supply chain resilience, and a growing backlog mean the operational side is ready. Margins are expected to improve as mix shifts to higher-ASP tools; management guided to ~52.5–53% gross margin and 30–32% operating margin exiting the year, up from 51.4% and 27% in Q2. China remains stable at ~45% of revenue, with OSAT strength offsetting any sense of regional concentration.

For investors, the key takeaway is that Camtek is no longer waiting for the advanced packaging cycle — it is riding it. The order momentum, combined with a new photonics growth vector and clear margin trajectory, makes this more than a standard beat-and-raise. It is a strategic inflection point.